In a report published Tuesday, Oppenheimer analysts downgrades Apple (NASDAQ: AAPL) from Outperform to Perform, removing their previous price target of $560.

Apple released their earning report after Monday's close of sales/EPS of $57.6B/$14.50 beating the Street estimate. However, their guidance for the next quarter was not up to par with market expectations with China Mobile (NYSE: CHL) in their back pocket. The report defends their downgrade, "iPhone missed targets including shipments (51.0M vs. Street 54.6M) and revs ($32.5B vs. $32.9B) with the Street likely overestimating the 5C ramp. Disappointing North America trends. Compressing industry life-cycles/tough competition."

Oppenheimer concluded, "We see Apple now entering a lull period (like the one seen in 1H-CY13) until its next new product cycle comes into view. Near-term expansion opportunities (current products) are mostly in emerging markets, but with competition tough (especially in China) and margins/ASPs at risk of moderation, we believe investors would be cautious."

AAPL closed Monday at $550.50 and is trading down 7% at around the $511.94 level.